Respuesta :
Andrew Carnegie create a monopoly in the steel business
Further explanation
Andrew Carnegie was born in Scotland in 1837, at the age of 13, his family emigrated to the USA. Because of his hard work and dedication around in the 1870s, he built his own company in the steel industry. At that time, the demand for steel is on the rise. The nation industry in the needs of steel to build railroads, and skyscrapers.
Carnegie developed his business into a vertical monopoly by controlling every aspect of one highly valuable product. He controlled every level involved in steel production, from raw material he gained control on iron and coal mines, in manufacturing, he implemented the Bessemer process. He also bought the railroad and the shipping company. By doing this he could reduce his costs and produce cheaper steel.
In 1901, he sold his Carnegie Steel to J.P. Morgan, who paid him 500 million dollars to create U.S. Steel. The US-Steel control 70 percent steel industry in the USA.
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Keywords: steel industry, Andrew Carnegie, monopoly, combine vertical, steel company, Carnegie
Andrew Carnegie developed a vertical monopoly in the steel industry.
Further explanation:
Vertical monopoly in the steel industry:
Andrew Carnegie built the largest company of the time in the twentieth century. His company built into a vertical monopoly in which every aspect regarding a highly valuable product was managed. A vertical monopoly is one large firm in which the entire supply chain of a high-value product is owned and managed. This kind of mechanism provides various benefits like lower transaction costs and synchronization of demand and supply across the supply chain of a product.
History of Andrew Carnegie monopoly:
Andrew Carnegie’s first steel mill construction started in the year 1872. The mill produced cheap, high-quality steel using advanced technology and cheap labor. In the year 1892, Andrew Carnegie developed a steel company by acquiring nearby competing steel mills. The Carnegie steel company owned various mills and transportation systems to ensure smooth production of steel at the end of the nineteenth century. In 1901, Carnegie sold his company to United State Steel Corporation.
Therefore, Andrew Carnegie formed a vertical monopoly in the steel industry in the past.
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3. Learn more about Monopolistic Competition
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Answer details:
Grade: Senior School
Subject: Economics
Chapter: Monopoly
Keywords: in which, business, did, Andrew Carnegie, create, a monopoly, vertical monopoly, steel industry, developed a vertical monopoly in steel industry, United State Steel Corporation, high-quality steel, advanced technology, steel mills, entire supply chain is owned and managed.
